Landlords are facing the adverse effects of the pandemic, which makes it difficult to make any rental decision that puts their tenants in jeopardy. Caught between tenants and eviction laws, landlords in Dayton are looking for ways to recoup that rental income.
Ohio’s new federal law and state laws have favored landlords by allowing them a few rights and obligations. It includes renting property for any amount, evicting tenants for not paying the rent regularly, establishing rental property or lease agreement-related conditions that do not violate federal or state laws.
What Do Dayton Property Owners Prefer – Higher Rent or More Income?
Dayton landlords can generate higher revenue from their rental investments through one of the following ways:
- They can charge higher rents from their tenants.
- They can choose to focus on increasing their income by adopting best practices and effective strategies.
Charging Higher Rents
When you decide on rents for your Dayton investment property, make sure the price is consistent with the market rates. It is essential to analyze the competition and fix the rate accordingly. Prices also vary according to the location.
Understanding the rental pricing structure of the units that are similar to your property could be of help. While overcharging can draw the potential tenants away, undercharging may cause you to lose significant revenue. Therefore, it is necessary to strike a balance between the two and fix a reasonable price.
Benefits of Charging High Rents
- Maximize your ROI
Your tenants will pay the rent as long as the increase is sustainable for them. It can help you to maximize your returns on investment.
- Improve financial security
Charging high rents can also build your financial security. Since a significant portion of rental expenses such as maintenance and upgrades can be drawn from the rent you take, you can save more money from your primary and other sources of income.
Disadvantages of Charging Higher Rents in Dayton
Deciding to increase rent is profitable for the landlord, but charging above market rates may not be favorable. The renters are suffering from higher rent issues in Dayton. Charging excessively high rents will cause you to lose tenants and result in high vacancy rates for your rental property.
It is good to charge based on the facilities and location of your rental. However, if you do not have enough amenities to back up a higher price tag, proposed tenants will move on to the next property.
If landlords want to increase rents, they must comply with regulations and procedures mentioned in Ohio rental policies. However, landlords can increase the rents as long as they provide reasonable notice to tenants before lease agreements. Landlords should give the notice 60 days from the next rent due date.
Ways to Maximize Rental Income Without Higher Rent
Here is how rental property owners can generate significant revenue even without charging higher rents.
- Curb expenses
Although you can’t escape from paying insurance, taxes, and loan payments from your earnings, you can surely save more by limiting the rental expenses. It includes expenditures such as investing in new appliances, renovation, and landscaping.
You can get potential tenants by fulfilling the basic requirements such as routine maintenance, regular servicing of the existing appliances, and timely rental inspection. Consequently, spending less can help you to bring in more money.
Use inexpensive ways for increasing the aesthetic appeal of the house
Try to redecorate the interior of your home through cost-saving methods, such as coating walls with paint, using wallpapers, carpeting, doing minimal gardening in the yard, and fixing problems such as leakage promptly, so they don’t look bad.
- Allow Pets
Pet-friendly properties are in high demand. Consider allowing pets at your property. It can boost your rental income in multiple ways. Pet owners are likely to pay more for allowing their companions. It can help you to get high-quality renters. They can pay extra charges for allowing their pets, and they are usually long-term tenants.
- Charge for using extra room
If you have more space on your property, consider charging additional fees for using the area. Tenants usually do not mind spending a little extra if the facility can add to their convenience. In case you do not have enough space, you can remodel the house for additional income.
- Hire professionals
You can hire professionals to handle your rental investments, such as reporting your monthly income, filing taxes, maintenance charges, security deposit, and other expenses. Having your accounts in order can help you to analyze expenses and maximize your rental income.
Maximizing the revenue is the ultimate goal of real estate investment. Choose the way that best suits your short-term and long-term investment goals. We, at ManCo Property Services, can help you employ the most effective ways to optimize your income from the rental properties. Contact us for more details.
